There’s no doubt that challenger banks are beginning to pose a problem for traditional financial institutions. They operate with lower overhead costs and are able to entice customers with lucrative offers (facilitated by open banking). And for heavily regulated traditional banks, it can be tough to compete.
Or at least that’s what you might expect. But traditional financial institutions have a leg up on their digital challenger banks. For one, they have decades of data. They also have a high degree of consumer confidence. And — with the right innovation push — have the capital to spend offering extremely competitive products and offers.
But it’s not just about the hottest offer, the best reward or even a stellar product. It’s being proven time and again that a customer-centric, holistic approach is what catches and retains customer loyalty. In fact, we named customer-centricity our top banking trend for 2019.
While we’ve written about it before, few articles got right at the crux of how fair, transparent banking would capture and keep customers better than “Beyond the veneer: Creating a fair, transparent and tailored customer experience in a digital banking world”.
It is as relevant today as it was when it was published, and for banks looking to challenge the challenger banks, it’s a great place to start.
Zafin (@zafin) is a leading financial technology provider that enables banks to form richer, more personalized client relationships. Built from the ground up for financial services, its platform empowers banks to enhance revenue and operational efficiency. Founded in 2002, Zafin sits among North America’s top FinTech companies, and is trusted by retail and corporate units at some of the largest banks worldwide. Headquartered in Toronto with global offices, Zafin has a proven track record with a 100 percent client retention rate as validation.
Cam is the Digital Communications and Marketing Coordinator at Zafin. With a background in journalism and a passion for blogging, Cam strives to tell compelling digital stories. At Zafin he will share the latest trends and news in the FinTech world, and share the Zafin role as leader in the industry. Follow him on Twitter @CamSmoth